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Rosstyle Group’s Profile

Commerce

Wholesale

Rosstyle Group started its operation as Rosstyle Ltd. in 1996. During the 12 years that lapsed after the start of business, Rosstyle has become the largest distributor of the repair and home-improvement goods and the leader of the strategic group of the three biggest distributors. It has become possible due to the successful strategy which allows to safeguard the market share in Rosstyle’s traditionally strong groups like wallpaper and self-adhesive foils, while aggressively developing new ones what results in gradual consolidation of the market.

Currently Rosstyle’s core business is import and distribution of wallpapers and self-adhesive foils (with market shares of 30% and 50% of the Russian market correspondingly), with an unprecedented assortment of 5000 active SKUs in wallpapers. Actively growing are also “Lighting”, “Bathroom goods”, “Flooring materials” and “Textiles”. Pursuing this strategy, Rosstyle has made a dramatic progress in distribution of sanitary wares and ceramic tiles, and now belongs to the group of Top 3 players in the respective segments of the market.

One of Rosstyle’s major competitive advantages is a vast geographic presence in major regional centers of Russia, Ukraine and Kazakhstan, and the added value for the customers it creates. In terms of the number of wholesale regional subsidiaries and sales offices in Russia, as well as the penetration into the retail distribution level, Rosstyle definitely leads the market. In Ukraine Rosstyle maintains a strong and growing presence via two subsidiaries in Odessa and Kiev.

In 2007-2008 we started to relocate the joint stock of goods at the Severnoye Domodedovo A category warehouse complex. The stock is managed by ad hoc Best Eurasian Logistics company.

Rosstyle is an exclusive or major supplier of several product groups to OBI, Leroy Merlin, Castorama, Maxidom, Auchan, HomeCenter, Domovoy, etc. Broad and deep range in every product group makes it possible to select specific assortment for each key account.

Group’s total warehouse space exceeds 70.000 sq. m., office and showroom space is more than 8.000 sq.m. Total number of personnel exceeds 2200 people. Each regional subsidiary has set up a key account department to better serve the international and domestic chains.

The group records an unprecedented growth tempo, well ahead of the average industry statistics. The major key success factor is the product group and brand portfolio. In total, Rosstyle Group cooperates with more than 150 manufacturers, i.e. Rasch, Marburg, Coswig, Keramag, Agrob Buchtal, Alkor-Venilia, Philips Lighting, Ifo, Vitra, etc.

Retail

In the retail level of distribution in Moscow, Rosstyle operates its own shops in the following formats:

- pavilions and small shops in the open DIY markets (some estimates show that up to 94% of finishing materials in Moscow are still sold in the open markets, the so-called civilized or modern retail has only started to redistribute market shares),

- booths at the so-called permanent exhibitions (Ekspostroy, Frunzenskaya Naberezhnaya, etc.), mainly ceramic tiles are marketed this way,

- salon shops – the first shop of the Decor Prestige chain started its operation in 2004 in Profsoyuznaya street. Under this category also fall showrooms of the central office. By August 2008 Rosstyle have launched a total of more than 20 000 sq. m. of retail shops in Moscow, Novosibirsk, Ekaterinburg, Sochi, Samara. In addition to assortment all-goods shops we have also started mono stores like Decor Prestige Tiles, Decor Prestige Lighting and Decor Prestige Wallcoverings.

- Decor Bourgeois, a niche project for upscale luxury finishing materials. .

The major advantage of own retail is a higher margin and of course an immediate feedback regarding new items we market.

Real-estate Development

In 2008, Rosstyle launched its first commercial real-estate development project, Sokolniki club village on the Novorizhskoye highway in the prestigious Istra district. Capital LLC was set up to operate in this new environment.

Market Overview and Competitive Strengths

Russian repair and home-improvement goods market has seen stable growth during last several decades. In 2000-2008 an average market growth was circa 20% annually.

Our product group portfolio is made up in a way that allows to compensate for a seasonal drop of a product by a high season in another. For instance, in autumn wallcoverings turnover drops and lighting sales rise.

Competitive strengths at a glance:
- unity among the shareholders.
- each product group operates as a separate business entity employing qualified personnel from the market
- a synergetic one-stop-for-all-goods offer has a very strong appeal for customers who save time and money by concentrating on a major supplier
- a vast network of regional subsidiaries creates a strong added value for local customers
- own retail in a number of cities
- work in all levels of distribution from the import to the retail increases profitability
- unprecedented range of manufacturers and brands in every product group.

Our Achievements

On the 20th of November, 2006 in Madrid, Spain, Editorial Office and Trade Leaders Club awarded a prestigious International New Millennium Awards for Excellence in Products & Services and a golden Global Quality Management badge to Rosstyle Group. Trade Leaders Club is a non-profit organization that holds over 7 000 companies from 120 countries. Since 2006 Rosstyle Group is also a member of the club.